FTSE 100 touches above 9,000 for the first time
The top tier later eased back to stand 3.34 points lower at 8994.72 by mid-morning.
Markets across Europe lifted tentatively with the Dax in Germany and France's Cac 40 up 0.3% and 0.2% respectively.
Investors were optimistic that a deal can still be reached between the US and EU, despite the latest tariff threats from US President Donald Trump.
Mr Trump said on Saturday that major trading partners Mexico and the EU would face a 30% tariff starting next month, piling on the pressure for deals to be struck.
Some stocks were struggling on the FTSE despite the record being reached, with Barratt Redrow plunging to the bottom of the top tier, shedding 7% after a disappointing update, which also dragged rival housebuilders Persimmon and Berkeley Group lower.
Victoria Scholar, head of investment at Interactive Investor, said a speech by Chancellor Rachel Reeves later will also be in sharp focus.
She said: 'UK Chancellor Rachel Reeves prepares to deliver her closely watched Mansion House speech tonight when she is anticipated to outline a series of financial reforms including measures to improve mortgage access.'
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The Independent
24 minutes ago
- The Independent
Will Rachel Reeves' mortgage bombshell do more harm than good?
There's a great deal riding on Rachel Reeves' Mansion House speech tonight – more so than usual. Between the government's welfare reform plans being torn to shreds, the economy hitting a wall and public finances being mired in a sea of red ink, things haven't been great for the chancellor lately. Then there was her tearful appearance in the House of Commons a few weeks ago, blamed on a personal issue, and the lukewarm endorsement she received from Keir Starmer – which was swiftly reversed because the fiscally hawkish Reeves is seen in the City as greatly preferable to any of her possible replacements, and the markets reacted very badly when speculation about her future was at its height. Of course, she is not solely responsible for all of the above, but she does need to get back on the front foot – and her audience with City grandees is key to her success. As is typically the case with the annual event, large parts of its contents have been pushed out in advance – most notably the so-called 'Leeds reforms' which will tear up some of the post-financial crisis regulations that the City has been chafing against. At the centre of this are plans to make it easier for people to obtain bigger mortgages. The government is also launching a state-backed mortgage guarantor. The risks are obvious: do this and you could easily end up with more bad debt and more defaults when economic conditions turn against borrowers. Interest rates are on a downward path, and mortgage deals have been improving, which helps. But it won't always be that way, and unemployment is rising (thanks in part to Reeves increasing taxes on jobs). The new guarantor will also inevitably shift the burden of risk on to the taxpayer. Am I alone in having a problem with privatised profits and socialised losses? The City will always applaud deregulation, and quietly welcomed Labour's prodding the Financial Conduct Authority (FCA) to cool its regulatory jets and get with the programme. The Leeds reforms promise more of the same – including reform of the Financial Ombudsman, which has in recent years been functioning as a quasi-regulator. That, we are told, will end. An easing of the much hated senior managers and certification regime, another post-crisis measure, is promised. Ditto the FCA's consumer duty rules. So, too, are there are plans to boost fintech – and to ensure the Basel capital rules on banks are implemented in a way that 'supports UK competitiveness'. I suspect this means we'll find a way of cheating. A review of the ring-fencing regime – designed to protect retail banking assets (so yours and mine) from the City casino – is promised. My bet is that this will end up getting scrapped. Cross your fingers. If things go wrong again, it could get very messy. And there will be another crisis. It's in the nature of banking. City trade body UK Finance was positively gushing in response. 'We submitted a range of ideas to government to help support growth and the UK's position as a global financial centre. Across many of these key areas the chancellor has listened and delivered significant positive change,' said its CEO, David Postings. Of course he did. But here's the thing: if you take a look at the Treasury's press release, you will see that there is one very big omission. It is the one thing everyone attending tonight's shindig will want to hear about. It trumps even the most radical parts of the 'Leeds Reforms' and will ultimately be what Reeves is judged on. By now you've doubtless guessed that I'm talking about tax. Reeves has already soaked businesses by taxing jobs, with predictable results when it comes to unemployment. The City's view is that it already pays enough, contributing nearly £1 in every £10 the chancellor raises. Reeves is hoping that her reforms will spur growth, which she desperately needs. The City will tell her that it won't happen if she hits it again. That doesn't just apply to her increasing the burden on businesses. She will also be told not to hammer Britain's millionaires. With little headroom left over, her self-imposed fiscal rules and a tax-raising budget expected, Reeves has said the burden of balancing the books will fall on those whose shoulders are 'the broadest'. Most would agree that this is only fair. Many understandably find it offensive that Britain's poorest are being kicked via what remains of welfare reform while the richest employ clever accountants to cut their bills. But if she hits the uber rich too hard it turns into a zero sum game, because while some will stick around and grouse about their bills, others will just leave altogether. The result is that you don't end up raising more money – and you may, in fact, end up with less. So, how does Reeves plan to solve this problem ? I'm not sure the City will get an answer. Not yet. Reeves has made a start at re-establishing some credibility and authority, but the likely response to Mansion House will be this: 'Good start. But our verdict – and our business decisions – are on hold until the budget is in.'
North Wales Chronicle
33 minutes ago
- North Wales Chronicle
PM wants fewer jobless foreign nationals on benefits as first-time data released
The number has risen by almost a fifth (17%) in a year, from 514,961 in May 2024 to 604,914 in May this year. The figures, published by the Department for Work and Pensions on Tuesday, show the number of British and Irish nationals not in work and claiming universal credit (UC) has also risen over the same 12-month period. There were 4.3 million people in the Common Travel Area category – made up of people who live or work in the UK without any immigration restrictions – on UC in May. This rose from 3.5 million in May last year and was almost double the 2.8 million such claimants in May 2022, which is the earliest month for which data is available. In total there were 7.9 million people on UC – a payment to help with living costs and available for people on low incomes or those who are out of work or cannot work – in June. The vast majority – 6.6 million or (83.6%) – were British and Irish nationals and those who live or work in the UK without any immigration restrictions. Just over a third (34% or 2.7 million) of all those on UC were in work as of May. The figures showed that the total number of UC claimants who are refugees, have EU settled status, arrived under a humanitarian route or have either limited or indefinite leave to remain in the UK has risen year-on-year, from 1.1 million in June 2024 to 1.2 million last month. The numbers in these categories on UC and out of work have also risen steadily over the past three years, with the Conservatives saying they have a 'clear, common-sense position' that the benefit 'should be reserved for UK citizens only'. The Government said it had 'inherited a broken welfare system and spiralling, unsustainable benefits bill' and was working on reforms including tightening rules on who can claim. The Prime Minister's spokesman said they will double the amount of time it takes to apply for settled status from five years to 10, limiting eligibility for the benefit. Asked whether Sir Keir wants to see the number of foreign nationals claiming benefits while unemployed reduced, his official spokesman said: 'Absolutely, we both want to see the overall numbers of immigration reduced and we've set out plans for that through the Immigration White Paper. 'Within that, we also want to see people making a contribution to the UK, and that's why in the White Paper we set out that we will be doubling the amount of time it takes to apply for settled status. 'That actually means that typically you can only access universal credit after you've lived here currently for five years, and we're doubling that to a starting point of 10 years, so that will obviously reduce those numbers.' The Department for Work and Pensions (DWP) said it had published the statistics 'following a public commitment to investigate and develop breakdowns of the UC caseload by the immigration status of foreign nationals in receipt of UC'. People with EU Settlement Scheme settled status who have a right to reside in the UK were the second largest group on UC, accounting for 9.7% (770,379), while 2.7% (211,090) of the total had indefinite leave to remain in the UK. Refugees accounted for 1.5% (118,749) of people on UC, while 0.7% (54,156) were people who had come by safe and legal humanitarian routes including under the Ukraine and Afghan resettlement schemes. A total of 75,267 people, making up 1% of the total on UC, had limited leave to remain in the UK, covering those with temporary immigration status. The rest – some 65,346 people – were either no longer receiving UC payments or had no immigration status recorded on digital systems, the DWP said. People can access UC only if they have an immigration status that provides recourse to public funds. Those with no recourse to public funds (NRPF) cannot claim most benefits, tax credits or housing assistance that are paid by the state. Asylum seekers do not have access to UC as they have NRPF but those granted refugee status – deemed to have been forced to flee their country because of a well-founded fear of persecution, war or violence – can claim the benefit. While refugees on UC had the lowest rate of employment at 22%, the department said those who have only recently been granted refugee status cannot be in employment at that point as asylum seekers are not permitted to work. Independent MP Rupert Lowe, an ex-member of Reform UK, had welcomed the pledge to publish the data, describing it as a 'huge win' for those who had 'relentlessly pushed for this'. He described the numbers as 'absolute insanity', posting on X: 'We cannot afford it. The country is BROKE.' Shadow home secretary Chris Philp branded the figures 'staggering' and claimed they are 'clear proof that the Labour government has lost control of our welfare system'. He said: 'Under Kemi Badenoch, we've set out a clear, common-sense position. Universal credit should be reserved for UK citizens only. This is about fairness, responsibility and protecting support for those who've contributed to this country.' But the Government said the proportion of UC payments 'to foreign nationals has already fallen since last July'. While the numbers of claimants who are refugees, have EU settled status, arrived under a humanitarian route or have either limited or indefinite leave to remain in the UK have risen year-on-year, the proportion has fallen. These categories account for 15.6% of the total UC claimants in June, down from 16.5% a year earlier when the Conservatives were still in government. The number of British and Irish nationals and those who live or work in the UK without any immigration restrictions – covering those in the Common Travel Area (CTA) – rose by almost a million from 5.6 million in June last year to 6.6 million last month. The proportion also rose slightly from 82.5% to 83.6%.
South Wales Guardian
34 minutes ago
- South Wales Guardian
Chancellor's Leeds Reforms to put money in people's pockets
In the Chancellor's Leeds Reforms, Rachel Reeves has unveiled a package of reforms to the UK's financial system set to be the biggest in a decade, aimed at delivering economic growth and spurring on retail investing. Changes include reforming the bank ring-fencing regime and reducing red tape in the City in order to reintroduce 'informed risk-taking' into the financial system, the Government said. The Chancellor said the 'Leeds reforms', unveiled in the West Yorkshire city, 'represent the widest set of reforms to financial services for more than a decade'. New measures are intended to help drive increased levels of investment among both financial firms and individuals. The Treasury said the ring-fencing regime – which was brought in after the 2008 financial crisis to separate banks' retail and investment banking activities – will be reformed. Economic Secretary Emma Reynolds will lead a review into how changes can strike the right balance between growth and stability, including protecting consumers' deposits, it said. Britain is a global outlier in enforcing ring-fencing, and major banks have been divided over whether the system is necessary to protect savers or is overly burdensome. The Treasury said it was backing regulatory reforms for mid-sized banks to free up money for lending and investment. Furthermore, the plans include cutting layers of red tape for businesses in the City. This will see the UK's Financial Ombudsman Service – which settles complaints between consumers and businesses – modernised and simplified to help create a more predictable system and prevent consumer compensation being delayed. It will also speed up changes to the senior managers regime, which was also brought in after the 2008 crisis to vet individuals before they are appointed and hold them accountable for problems and risk-taking. The Government said it will radically streamline the current regime and cut the burden on firms in half. The Leeds Reforms - named after one of our financial services' hubs and a city I'm proud to represent - will deliver the biggest package of reforms to financial services regulation in a decade. Kickstarting economic growth and putting more pounds in people's pockets. Cuts to City red tape sit alongside efforts to boost the level of investment among individuals. This includes rolling out 'targeted support' from April next year, whereby banks can alert customers with cash sitting in low-return current accounts about investment opportunities. Major banks and financial firms including Barclays, Lloyds, Vanguard and Hargreaves Lansdown are backing a new advertising campaign highlighting the benefits of investing. Risk warnings on investment products could also potentially be watered down as part of a review into possible barriers to investing. The Government also said it will continue to consider reforms to ISAs and savings to strike the right balance between cash savings and investment. Ms Reeves was widely expected to leave cash ISAs untouched in the measures announced on Tuesday (July 15), following speculation that she was planning to cut the annual tax-free allowance in a bid to spark more investment instead. 'We are fundamentally reforming the regulatory system, freeing up firms to take risks and to drive growth,' Ms Reeves told finance chiefs when setting out the reforms in Leeds. Recommended reading: HMRC urging parents to claim £2,000 tax-free childcare HMRC Child Benefit changes with opt-in campaign for parents More than half a million more savers to benefit from HMRC cash - apply today Adam French, consumer expert at says: 'It is encouraging to see steps being taken to make retail investing a less daunting proposition by plugging the advice gap and empowering firms to give more targeted support while maintaining appropriate safeguards. But it is only part of the puzzle. 'It is also essential that we avoid a return to the low interest rates of the past decade which had a significant and often overlooked side effect: skewing investment priorities by driving capital into property instead of more productive areas of the economy. For the Leeds Reforms to work it must be the case that backing the next generation of British businesses looks safer and more rewarding than property speculation.' Brian Byrnes, head of personal finance at Moneybox, adds: "It is encouraging to see steps being taken to support first-time buyers. Enabling people to borrow more is not a silver bullet. What first-time buyers truly need is not just the ability to take on more debt, but meaningful, long-term support to help them start saving and investing earlier in life so they can build up that all-important deposit." Sarah Coles, head of personal finance for Hargreaves Lansdown, also comments: 'It's incredibly positive to see Rachel Reeves take some key steps towards closing the UK's yawning retail investment gap. 'There will be a new era of investment with the advent of new rules allowing companies to offer targeted support to their clients, alongside changes to risk warnings so they actively help retail investors understand their options rather than standing in their way of harnessing the incredible power of investment.'
